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| Senate approves tax-free weekend |
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July 14, 2005 - Once again, the Legislature approved a tax free holiday in August. To make things better, this year the Senate moved to expand the sales tax holiday from one to two days. Senator Richard T. Moore (D-Uxbridge) said the Senate voted to adopt legislation that allows consumers to shop tax free on both Saturday, August 13th and Sunday, August 14th. Almost all purchases under $2,500 except vehicles, motorized boats, tobacco, meals and utilities will be tax-free on that weekend. “Our initiative last year was to spur retail sales and boost local economies while giving back to our consumers whose spending helped the state through some very difficult fiscal times,” said Moore. “With the approval of the bill, we hope the consumers will continue to support the Commonwealth’s economy by taking advantage of the tax free weekend. Last year’s tax free holiday, held on August 14th cost Massachusetts $10 million in revenue, but retailers estimated it generated more than $400 million in one day sales. John Hurst, President of the Massachusetts Retailers Association said expanding the holiday to a weekend will produce bigger bonuses for consumers and employees. “The retailing industry and our customers are grateful to the Legislature for the passage of this second annual sales tax holiday,” said Hurst. “The Senate’s addition of Sunday is truly a bonus for consumers, tourists, stores, and the Commonwealth alike. The long lines and customer crush seen last year will be divided up between two days, giving customers and store employees a better experience.” The Department of Revenue estimates that the weekend holiday will cost $15 to $20 million in lost revenue. But lawmakers predict the loss will be offset by increases in meal taxes, individual income tax withholding and economic activity that is expected to be higher than last year’s one-day sales tax holiday. The bill will now go to a Conference Committee for consideration. More information on Senator Moore’s legislation can be obtained by checking his web site www.senatormoore.com. |
